Summerlin Benefits Consulting Q&AAnswers
Oct 10, 2024 - 03:55 PM
Here are three quick tips on how to invest in annuities to build wealth:
1. Choose the Right Type: Fixed annuities are ideal for those seeking guaranteed returns and protection from market risk, while variable or fixed index annuities offer more growth potential with market exposure but come with higher risk. Match your investment choice to your risk tolerance and goals.
2. Leverage Tax Deferral: Annuities grow tax-deferred, meaning you won’t pay taxes on earnings until withdrawal. This allows your money to compound over time, accelerating wealth accumulation, especially if you're in a high tax bracket.
3. Consider Long-Term Income: Opt for annuities that provide lifetime income, ensuring you won’t outlive your savings. This can be a key part of your retirement plan, creating a stable and reliable income stream for life.
These tips can help you strategically incorporate annuities into your wealth-building plan.
Oct 15, 2024 - 09:40 AM
Investing in annuities can be a powerful strategy to build long-term wealth, especially for retirement. Start by identifying your financial goals, such as whether you need guaranteed income, principal protection, or growth potential. Fixed annuities provide stable, low-risk returns, making them ideal for conservative investors. For more growth potential, consider fixed index annuities, which are linked to stock market indexes but still protect your principal from losses. You can also choose variable annuities, which offer higher returns through investments in mutual funds, though these come with more risk.
Timing is crucial—deferred annuities grow over time and are best if you’re years away from retirement, while immediate annuities provide income right away. Tax-deferred growth is a key advantage, allowing your investment to compound without annual taxes. Be aware of the fees, including surrender charges for early withdrawals, which can reduce your overall return. Diversify your portfolio by combining different types of annuities with other retirement vehicles like IRAs or 401(k)s. Lastly, ensure the insurance company offering the annuity is financially strong to guarantee your payments. Annuities can be a cornerstone of a balanced wealth-building strategy, offering both security and growth potential for your future.
